imovie hd themes

[numlock]

Im trying to use a particular picture in the "lower third" variation of the Pass Through theme. Imovie always stretches the picture leaving it quite unattractive. And i just went through all the other possible themes and it either stretches the picture or crops it so it only shows a portion of it. Do i have to edit the size of the pictures before using them in imovie?

 

[numlock]

Nobody has come across this?

Im not much for bumping threads but wanted to include pictures. The one on the left is the original picture and the one on the right is the same picture used in a theme and exported.